How to beat price rises from energy bills to your mortgage - as inflation hits 2.9%

Inflation has jumped to its highest rate since March - but there are plenty of ways you can fight back against price rises. The Consumer Prices Index (CPI) measure of inflation rose to 2.9% in July, up from 2.6% in June. The increase was widely expected after energy bills jumped by 13% last month. From energy bills to your mortgage, we explain all the ways to bring your bills down - plus a warning for savers, who may not be getting the most for their money. Energy bills The price of gas and electricity is set to rise again this winter. Energy analysts at Cornwall Insight are expecting another 4% jump in the Ofgem price cap from October. This would follow a 13% increase that already came into effect in July. But experts at Uswitch.com say households can save money by switching to a fixed energy deal - with the best deals on the market currently undercutting the latest price cap prediction by around 12%. Richard Neudegg, director of regulation at Uswitch.com, said: “Don’t suffer higher winter bills when you don’t have to – a decent fixed tariff beats these rates and protects you from further price rises. Every week spent on a standard tariff is another week paying higher rates than you need to.” You can also save money by getting your home ready for winter, by sealing any window or door drafts and bleeding radiators, and checking if you are entitled to any energy help. For example, Winter Fuel Payments are worth up to £300 and are available to those who are over state pension age. There is also the Warm Home Discount, which gives you £150 off your electricity bill if you claim certain benefits. Savings Savers are being urged to check the rate they are getting on their savings, as around four in five accounts still pay above inflation, according to Moneyfacts. Its analysis shows there are currently 1,850 savings accounts that beat inflation. The top-paying easy-access account offers a rate of 5% - so if you saved £10,000 for one year, this would accrue £500 in interest. The real gains after inflation on this would be £210. Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, said: "For savers, beating inflation is the difference between simply earning interest and increasing the spending power of their money. While a balance can be growing on paper, it could be shrinking in value if the savings rate fails to keep pace with rising prices." But those with larger savings pots also need to be aware of potential tax implications. Basic-rate taxpayers can earn up to £1,000 in savings interest each tax year before they start to pay tax on the interest earned. Higher rate taxpayers can earn up to £500 in savings interest before they have to pay tax, while additional rate taxpayers do not receive any allowance. Any interest earned above these limits is taxed at your usual income tax rate. Ms Eastell added: "Higher-rate taxpayer can use up their £500 Personal Savings Allowance with just £10,000 earning 5%, meaning any further interest could become taxable. Despite their slightly lower rates, this is where ISAs could become particularly valuable." Mortgage Mortgage rates have risen since the start of the Iran war, although lenders have reversed some of those increases in recent weeks. But experts say the market remains volatile and it would be "impossible to rule out more yo-yoing" in mortgage rates. If your current mortgage is expiring, remortgaging to a cheaper deal will save you money. You can lock into a new fixed deal normally three to six months before your current mortgage expires. To do this, you will need all the relevant information about your existing deal - such as the rate you are on and your loan to value (LTV). This is the amount you are borrowing compared to the property's value. You can see what other deals are available to you by using an online comparison tool, or by speaking to a mortgage broker, as they will often have access to deals that aren't available on the open market. You should also speak to your current lender to see what rates it can offer you. This is known as a product transfers, which is where you get a new deal from the same lender. David Hollingworth, associate director at L&C Mortgages said: “The good news is that, because today’s increase in inflation was widely anticipated, it’s less likely for there to be big repercussions in markets that would put more pressure on lenders funding costs in the short term. "For anyone considering a purchase or remortgage, securing advice early remains important. Mortgage rates continue to change frequently, and the uncertain economic landscape will continue to dictate lender movements over the coming weeks.” Mobile and broadband Mobile and broadband are widely considered to be essential services - but that doesn't mean you cannot save money. If you are out of contract, look at prices elsewhere using a comparison website to see what other deals are available. If you find a cheaper deal, you can either switch to this - or try asking your existing provider if it can give you a better price. When comparing prices, look at how many minutes, texts and how much data you currently use, so you can find similar plans that suit your needs. For broadband, look at your current speed and if you need this fast of a deal. You may find you're actually paying too much right now for allowances or speeds you're not using. Sarah Coles, head of personal finance at AJ Bell, said: "Broadband and media deals can be switched, or you may be able to call your provider and negotiate a better deal just by threatening to quit." Water bills Millions of households are set to pay even higher bills after it was confirmed last week that five water companies including debt-stricken Thames Water were provisionally allowed to hike costs. Ofwat had already previously allowed water firms to raise average bills by £157, or roughly 36%, by 2030. But while you can't switch water providers, there are still ways to cut your costs. Every water company has a social tariff for eligible customers on a low income. Last year, almost two million households received support through social tariffs, with bills reduced by an average of £190. Sebrina McCullough, director of external relations at Money Wellness, said: “The rules are different depending on which water company you're with, so it's worth checking rather than assuming you won't qualify. If you're on a low income or your circumstances have changed, don't just carry on paying the full bill without checking.” If you have more or the same number of bedrooms in your house than people, you may also be able to save money by getting a water meter. It is also worth checking for free water-saving devices through Save Water Save Money. It varies depending on where you live, but some freebies include shower heads that regulate the flow of water, or tap inserts. Food Food inflation fell to 1.2% in July - the lowest level since September 2021. However, food producers warned earlier this week that soaring temperatures and droughts across the UK and Europe could drive prices higher. Dr Liliana Danila, chief economist at the Food and Drink Federation, said: "Competition for fewer resources will in turn push up the price of ingredients for manufacturers. "The UK's food and drink manufacturers work hard to absorb costs where they can, but are already grappling with rising costs as a result of war in Ukraine and in Iran, so we expect the additional upward pressure of reduced crops will be reflected in retail prices into next year." Thankfully, there are plenty of ways to save money in the supermarkets. One of the most popular ways to save cash is yellow stickers and the best time for these discounts is typically toward the end of the day, although this does vary between stores. You could also try the Downshift Challenge, which is where you swap branded goods for supermarket-own. Depending on what you buy, you could save around 30% on your food bill. It also pays to compare prices using sites such as Trolley.co.uk which takes into account live prices across all the major supermarkets and other popular retailers. Other tips include being organised. By writing a shopping list and sticking to it, you will reduce impulse buys when you're in the store. Finally, use your freezer to avoid throwing away food that can be eaten at a later date. You can tell if food can be frozen by checking product packaging for freezing instructions. Train tickets Train passengers face a potential 4.2% increase in ticket prices next year, based on inflation figures from today. The Retail Price Index (RPI) measure of inflation for July was also announced this morning and was confirmed to be 3.2%. Last year, rail increases were measured based on RPI in July plus one percentage point. If this same method is used again, it would mean train tickets could jump by up to 4.2%. The Government has not confirmed if the price of train tickets will rise next year. Regulated train fares did not go up this year after the former Chancellor Rachel Reeves announced a price freeze. To save money on train fares, plan your journey as far in advance as possible to get discounted fares. Train companies typically release cheap advance tickets about 12 weeks ahead of the date of travel. Split ticketing, which involves splitting your journey up into different sections, so you're buying lots of multiple tickets instead of just one single ticket, could also save you money. For regular travellers, a railcard can save you between 30% and 50% off the price of your fare. You may also benefit from purchasing a season ticket or flexi ticket, again, depending on how often you travel. Catherine Lyver from Railcard.co.uk said: "Brits are proving that saving money doesn't mean missing out. For many, the money saved with a Railcard becomes the ice cream, coffee or extra treat that makes a day out feel special."